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Introduction

This guidance note covers:

1. •

   the taxation of pension benefits from a non-UK pension scheme that are received by UK resident and UK non-resident members

2. •

   the taxation of pension benefits from a UK pension scheme that are received by UK non-resident members

Taking benefits from non-UK pension schemes ― general rules

Where a person retires to the UK from abroad, accessing their pension benefits is often a key element for funding their life in the UK. Options for taking benefits often include lump sums, scheme pensions, annuities or drawdown (and possibly a combination of benefits).

Benefits taken as pensions, annuities and drawdowns from non-UK pensions are generally considered to be pension income, in the same way as it would from a UK pension, albeit from a foreign source so UK tax will not be collected at source via the payroll. Therefore if the taxpayer is taxable in the UK on this income (see ‘Taxation of foreign pension benefits’ below), they will need to file a tax return to report